From: annily on
Hunter wrote:
> A phone company offered me a $10 discount if I bundled with their internet
> service. I then find on the bill that I only get -$9.09 for the discount.
>
> Is this legal?
>
> I thought that if prices are advertised without mention of GST then it be
> that GST is included. Would this apply to discounts in this case?
>
>

I'm pretty sure the $9.09 discount would be before GST is applied (many
bills show prices this way), hence $10 after GST.

--
Long-time resident of Adelaide, South Australia,
which probably influences my opinions.
From: Doug Jewell on
Hunter wrote:
> A phone company offered me a $10 discount if I bundled with their internet
> service. I then find on the bill that I only get -$9.09 for the discount.
>
> Is this legal?
Yes.
>
> I thought that if prices are advertised without mention of GST then it be
> that GST is included. Would this apply to discounts in this case?
Assuming the product/service attracts GST, then a price
stated without mention of GST is GST inc. This applies
equally to discounts which is what you got. To put it
another way, you pay a certain amount for your phone
service, which is inc GST. If you pay that amount less $10,
it is the inc GST amount which is reduced by $10.
If you are lucky enough to be able to claim a GST input
credit, that is a completely different transaction, and is
irrelevant to the amount you pay the Telco.
>
>
>


--
What is the difference between a duck?
From: Ray on
On 6/28/2010 11:12 AM, Hunter wrote:
> A phone company offered me a $10 discount if I bundled with their internet
> service. I then find on the bill that I only get -$9.09 for the discount.
>
> Is this legal?
>
> I thought that if prices are advertised without mention of GST then it be
> that GST is included. Would this apply to discounts in this case?
>
>

If -$9.09 is being applied before GST is added to the account then it is
exactly the same as adding GST to all your calls, then taking away $10
from the GST inc price.


From: annily on
SolomonW wrote:
> On Mon, 28 Jun 2010 18:22:00 +1000, Doug Jewell wrote:
>
>> Hunter wrote:
>>> A phone company offered me a $10 discount if I bundled with their internet
>>> service. I then find on the bill that I only get -$9.09 for the discount.
>>>
>>> Is this legal?
>> Yes.
>>> I thought that if prices are advertised without mention of GST then it be
>>> that GST is included. Would this apply to discounts in this case?
>> Assuming the product/service attracts GST, then a price
>> stated without mention of GST is GST inc. This applies
>> equally to discounts which is what you got. To put it
>> another way, you pay a certain amount for your phone
>> service, which is inc GST. If you pay that amount less $10,
>> it is the inc GST amount which is reduced by $10.
>> If you are lucky enough to be able to claim a GST input
>> credit, that is a completely different transaction, and is
>> irrelevant to the amount you pay the Telco.
>>>
>>>
>
> It depends on whether the person being supplied is a business or a person.
>
> Business to Business transactions are often quoted in GST EXT

So are some business to person transactions, then GST is added to the
total to arrive at the final figure.

--
Long-time resident of Adelaide, South Australia,
which probably influences my opinions.